restar group newly restarted · (application of the equity method) “ was released on may 13,...
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Restar Group newly restarted
A year has passed from the merger to form Restar.Through overhauling and innovating the businesses,
we newly restarted from this April.
We work towards our goal "Electronics Value Platformer“,and realize permanent growth and development.
To comprehend whole businesses/managements/strategies,we transform to the “innovative-collective structure” and drive it.
The Electronics Value
Platformer
We work towards our goal "Electronics Value Platformer"
which can deal with all kinds of needs by utilizing
information and technology, promoting the collaborative
creation and exerting the group effort.
Visualize the future and create a new market
Solving issues around the world
regarding electronics
Strength a trading company function(Expand customers and the product lineup)
Improve added valueDiversify a business function
Create a innovative businessInformation and technology
Group synergy
Global (in view and scale) / Social Contribution / Collaboration and Innovation
Various business activities
Solving social issues
Solving issues around the world regarding electronics
The Electronics Value Platformer
The Innovative-Collective Structure
We transformed to innovative management structure which has multiple representative who shares management philosophy and vision instead of one Chair person or President.
Nomination/assessment
Restar Holdings CorporationBoard of Directors
Audit and SupervisoryCommittee Member
Representative Directors
Advisory Board
Group Meetingfor Strategy
Inspection/supervision
Nomination andCompensation Committee
Audit andSupervisory Committee
Advice
DevicesElectronic/System
EquipmentsEnvironmental
EnergyManagement
Finance/Accounting
CorporatePlanning/Strategy
Multiple directors who shares vision
Newly established “Group Meeting for Strategy” for discussing flexibly our corporate strategy including business synergy and “Advisory Board” that consists of company management specialists from multiple
fields such as electronics industry in order to advise on each strategy and support the decision.Improve the system of corporate governance more functional with enhancing “Audit and Supervisory
Committee” and “Nomination and Compensation Committee”
The Innovative-Collective Structure
FY 2019 (Apr 2019 – Mar 2020)
Consolidated Financial Presentation
May 13, 2020
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FY 2019 (Apr 2019 – Mar 2020)
Consolidated Financial Results
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Net Sales:Growth by merger, Procurement and Environmental Energy contribute to net sales increase
Operating Profit:In spite of shrink of collected allowance for doubtful accounts in previous year and increase of amortizations
of goodwill/intangibles, keep profit gain by merger effect as a main factor
Ordinary Profit/Profit Attributable to Owners of Parent:
Investment gain on equity method (non-operating income). The news about “Stock acquisition
(Application of the Equity method) “ was released on May 13, 2019.
*Amortization of goodwill and amortization of intangibles by merger are included in FY 2019.
Financial Highlights
\ % of revenues \ % of revenues
Net Sales 205,771 ― 379,548 ―
Gross profit 15,513 7.5% 25,651 6.8%
SGA 11,005 5.3% 19,013 5.0%
Operating Profit 4,508 2.2% 6,637 1.7%
Ordinary Profit 4,198 2.0% 9,025 2.4%
Profit Attributable to
Owners of Parent2,192 1.1% 5,722 1.5%
(Millions of Yen)FY 2019FY 2018
(Millions of yen)
Devives
EMS
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Net Sales Ratio
FY 2019
■Devices (Segment for this report is compared with aggregated figures in previous year. The other segments are also same)
・Net sales decrease by the impacts of softening demand of consumer products and our vendor’s bankruptcy
・Enforced cost reduction by local offices integration, reviewing controllable cost and improving transaction condition
・Profit decrease by shrink of collected allowance for doubtful accounts in previous year and amortizations of goodwill/intangibles
・Work on enhancement of technological capabilities and co-creation with our business partners further more
with improving sales promotion step and profit ratio
■EMS
・Plant utilization improved by demand growth of display material for information communication
terminal for overseas market, and net sales growth by extension of components for module market
FY 2018 FY 2019 (*2)(reference)
FY 2018
Amount Amount Amount
Net Sales 185,374 275,170 308,620
Operating Profit 3,955 4,406 6,135
(Millions of Yen)
Semiconductor/Electronic Components
(*1)
(*2)
Procurement
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■Procurement
・Net sales increase by business expansion for major computer manufacturer in Hong Kong
and growing the number of Automotive/Computer Equipment handling effected by strengthening collaboration
with Panasonic Group
・Profit decrease by amortizations of goodwill/intangibles and so on
・Work on expanding business field by beginning a new approach at developing new customers by cooperation with “Devices”,
operating standard efficiently and company reorganization.
FY 2018 FY 2019(reference)
FY 2018
Amount Amount Amount
Net Sales ー 73,394 55,243
Operating Profit ー 386 463
(Millions of Yen)
Procurement
(*3)
Net Sales Ratio
FY 2019
Electronic
Equipment
System
Equipment
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■Electronic Equipment・Net sales growth by working on large-scale businesses for the markets on broadcasts or editorial studios,
demand increase for major commercial broadcasts, for promotion of replacing monitors to 4K equipment and
for public/medical institutions
■Measuring Equipment・Steady growth
■System Equipment・Net sales growth by steady increase of cashless payment terminal, access control system and so on.
■Whole net sales growth in the same level of previous year, increase in operating profit by reviewing cost radically■Strengthen cooperation further more among “audio/video solution business”,
”terminal unit utilizing NFC (Near Field Communication technology) business” and “maintenance business”.
FY 2018 FY 2019(reference)
FY 2018(*5)
Amount Amount Amount
Net Sales 22,080 22,871 22,971
Operating Profit 739 1,060 976
(Millions of Yen)
Electronic Equipment
(*4)
Net Sales Ratio
FY 2019
Energy
PPS
Vegetable
Factory
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■Energy・Net sales growth by rapid increase in panels/components sales for newly setting up solar power plants,
by establishing own solar power plant more (51 places in Japan: as of the end of April 2020)
and by working on wind power plant and solar sharing (solar energy production with harvest utilizing idle farmland)
■Power producer and supplier・Continuingly focus on a new power supply scheme of "Local Production and Consumption" after Feed-in Tariff payment period.
・Keep aim for saving purchasing cost through reduction of dependency on JEPX (wholesale electricity market).
■Vegetable Factory・Establishing the largest size of supply system among Japan and expand product lineup,
sales increase in B2B market such as convenience store or super market chain
・Promoting turning to the characteristic product, improving production efficiency and build a new sales scheme
■Growth in whole net sales, profit decrease by amortizations of goodwill/intangibles and so on as the large factor
FY 2018 FY 2019(reference)
FY 2018(*7)
Amount Amount Amount
Net Sales ー 10,889 10,313
Operating Profit ー 580 1,255
(Millions of Yen)
Environmental Energy
(*5)
Net Sales Ratio
FY 2019
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Notes for the report on four segments:
(1) Calculated as simply aggregated figures of UKC’s “Semiconductor/Electronic Component” and
“Quality and Reliability Test/Environmental Material Analysis Service” with Vitec’s “Devices
(except Measuring Equipment)” for FY 2018.
Amortization of goodwill and amortization of intangibles by merger are included in FY 2019.
(2) A parts of foreign subsidiaries’ financial period are changed from December 31, 2018
to March 31, 2019: consolidated financial performance in FY 2019 includes these subsidiaries’
between January and March. (Term change of the fiscal year affects 8,946 million yen as net sales
and 249 million yen as segment operating income)
(3) Figures are Vitec’s “Procurement” for FY 2018.
Amortization of goodwill and amortization of intangibles by merger are included in FY 2019.
(4) Calculated as simply aggregated figures of UKC’s “Electronic Equipment” and “Contactless IC card”
with Vitec’s “Measuring Equipment” for FY 2018.
Amortization of goodwill and amortization of intangibles by merger are included in FY 2019.
(5) Figures are Vitec’s “Environmental Energy” for FY 2018.
Amortization of goodwill and amortization of intangibles by merger are included in FY 2019.
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(millions of yen) As of March 31, 2019 As of March 31, 2020
Assets
Current Assets 88,289 134,297
Fixed Assets 9,071 62,756
Total Assets 97,361 197,053
Liabilities and Equity
Current Liabilities 57,878 103,432
Fixed Liabilities 624 19,852
Equity 38,858 73,768
Total Liabilities and Equity 97,361 197,053
Equity Ratio ー 35.7%
BPS (\) ー 2,340.78
(Millions of yen)
Consolidated Balance Sheet
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■Cash flows from operating activities 16,591
> Inctease in profi t before income taxes, amortization of goodwill,
share of loss (profi t) of entities accounted for using equity method
■Cash flows from investing activities △ 16,386
> Purchase of investments in subsidiaries and affi liates
■Cash flows from financing activities 2,683
> Increase in short-term loans, cash dividends paid
■Increase in cash and cash equivalents, others 5,346
Cash and cash equivalents at end of period 21,195
(Millions of yen)
Cash Flows
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Dividend Forecast
Dividend per share (yen)
Period 1st Half (expected) 2nd Half (expected) Annual (expected)
FY 2020 35.00 35.0070.00
(Ordinary dividends 70.00)
▼FY 2020 (Year-ended March 31, 2021) Dividend Forecast
Financial Forecasts for FY 2020・It has been very difficult that we make a decision for full-year financial forecasts
because the impact of COVID-19 (Coronavirus) is unclear.
・With identifying the impact continuously, we will determine financial forecasts
in all directions and disclose information promptly.
・Aim for 50% or more of total shareholder return ratio, keeping stable
and sustainable dividends payout
・Work on strategic investment for our future growth to improve capital efficiency sustainably
and expand profit even further
・Prepare internal reserve for capital demand increase in business expansion
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Strengthen Financial Standings by Merger and Strategic Investment
(Millions of yen) FY 2018 FY 2019
OCF 10,067 16,591
ICF △1,199 △16,386
FCF △13,133 2,683
5.6%
3.9%FY 2019
FY 2018
Contributory factor is improvement
of capital productivity
Working capital ratio
Credit/stock management
Fixed asset efficiency
Review fixed asset such as
cross-shareholdings
Our Action for Social Issues
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Solar Energy in the Form of Farming : From Feb 2018
Vitec Agripower utilize idle farmland
with production, processing and sales(From Feb 2020, started growing sweet potato)
Restar Group has been actively tackling the ESG (Environment/Society/Governance) activity.
We will work harder to execute our project of SDGs (Sustainable Development Goals).
Here is the other initiatives for the SDGs> https://www.en.restargp.com/ir/sdgs-esg/
Basic Principle Regarding the SDGs
Restar Group contributes continuous
development all over the world by real
involvement in SDGs activity.
Our aim is to achieve business opportunities
while contributing to society by connecting
SDGs implementation to actual business.
*Our company group sets "Contribution to society" as a one of
our pivotal business motto on our mission, vision and value.
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Contribution to Medical and Industry
Restar
Holdings
Linkers
Sewing manufacturer
in Japan
Cooperation with
small to medium enterprises
Operation/Management
Manufacturing
Business planning
Support medical field
Co-creation
Manufacturing and supply of medical gown
Activate local industries
Administrative organSupply to medical institution
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Solutions for Work System Reform
Various business activities of Restar group
Restar Communications(former: Kyoshin Communications)
Restar Castec(former: UKC Technosolution)
Video/Audio/Communication/
Construction of meeting room
Technology of contactless IC card/
Access control/Security
Shared officeRemotework Online
Support “work system reform”by Restar Group’s proposal for system and solution
APPENDIX
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Segment Changes
Environmental
Energy
Quality and reliability test/
environmental material
analysis service
Contactless IC card
System Equipment
Semiconductor/
Electronic Component
Procurement
Environmental
Energy
Electronic
Equipment
Devices
Measuring Equipment
Devices
Electronic Equipment
UKC Restar Vitec
Semiconductor/
Electronic
Component
Procurement
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・Deal in “cutting-edge” and energy/environmental devices from worldwide
・Offer unique solutions by wide range of products, high level technological support
・Variety of quality evaluations and hazardous substances test for devices and electronic
components
・LSI designing, evaluation and test services for semiconductors, especially for
image sensors
Quality and reliability test/
environmental material analysis service
Semiconductor/
Electronic
Component
System Engineering
Semiconductor/
Electronic
Component
Semiconductor/Electronic Component
Semiconductor/
Electronic
Component
Business Overview
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・Electronic component mounting for OEL panel in our group's factory,
and comprehensive purchase, production control and quality assurance function
・Offer optimal supply chain management system to customers through global
procurement/trading and entrustment service
EMS
Semiconductor/
Electronic
Component
ProcurementProcurement
Business Overview
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・Total solution from design, execution to maintenance of equipment for communication,
audio, video and broadcast
・Offer solutions by cutting-edge technologies of data processing, audio and video
・Development, production and sales of NFC (Near Field Communication) technologies
including Felica
Electronic EquipmentElectronic
Equipment
System EquipmentElectronic
Equipment
Measuring EquipmentElectronic
Equipment
・Offer unique applications of measuring, usage, system, and designing
・Support services of repair, measurement calibration for research, development, and sales
Business Overview
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・Comprehensive energy management by consulting, power supply, broker focused on
renewable energy
・Production and sales of vegetables in completely closed factories for B2B market such
as convenience stores and restaurant chains
Renewable EnergyEnvironmental
Energy
Power Producer and SupplierEnvironmental
Energy
Vegetable FactoryEnvironmental
Energy
Business Overview
・Introduce solar and wind power generation as renewable energy, to promote operation
management services with local partners
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Management Principles of the Restar Group
Mission
Vision
Value
We help society evolve by leveraging information and technology
to create and deliver new value and services.
We aim to be a comprehensive electronics trading company
that accommodates all manner of stakeholder needs.
“Global (in view and scale)” “ Social Contribution”
“Collaboration and Innovation”
・Through collaboration, we reflect diverse points of view as we create new cultures and values.
・Through innovative ideas and passion, we take on challenges and aim for higher targets.
・By expanding our business arena to encompass the entire world,
we contribute to sustainable social evolution.
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Disclaimer
This presentation is a reference translation of the Japanese original.
The contents is informational only and does not constitute to the official.
<Investor Relations Contact>
N.Takashima, H.Yoshida, T.Sakakibara PR.CSR.IR Department
E-mail [email protected]
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